Kentucky Motor Vehicle Commission TC 98‐1 APPLICATION …

Kentucky Motor Vehicle Commission APPLICATION FOR MOTOR VEHICLE DEALER LICENSE

TC 98-1 7/2022

Dear Applicant: The enclosed is furnished in response to your request for an application for a motor vehicle dealer license. It is essential that you follow the instructions in this letter and in the application in detail to ensure timely processing of your application. The application must be legibly printed. An incomplete application will be returned.

Item #1--Refers to the type of license required. (See attached definitions of licenses.) A dealer may require more than one license depending upon the scope of his/her business. For example, a franchised new motor vehicle dealer who also leases vehicles would place a mark in the bracket next to "New Motor Vehicle Dealer" and in the bracket next to "Motor Vehicle Leasing Dealer." The fee in this case would be four hundred dollars ($400.00).

? A dealer who sells an operable, road-worthy used motor vehicle, which is on a regular or rebuilt title, must have a "Used" or "Wholesale" motor vehicle dealer license. If that dealer also dismantles, salvages, or recycles salvage vehicles for the purpose of harvesting used parts, components, assemblies, and recyclable materials for resale, reuse, or reclamation, he or she must also have the "Restricted/Automotive Recycling Dealer" license, in addition to the other license(s).

? A dealer who sells vehicles with regular or rebuilt titles, and who also dismantles, salvages, or recycles salvage vehicles for the purpose of harvesting used parts, components, assemblies, and recyclable materials for resale, reuse, or reclamation, must have both endorsements on the license, if he or she carries on both activities at the same location. If he or she sells motor vehicles from one lot and recycles vehicles to harvest parts at another, a separate license must be obtained for each location.

Item #2--Revenue Cabinet sales tax permit number may be obtained by visiting or writing the Revenue Cabinet at 501 High Street, Frankfort, Kentucky. The telephone number for that office is (502) 564-3306.

Item #3 ? The trade name under which the dealership will be operated must incorporate the words "used cars," "auto sales," "auto mart," "motor sales," or other similar wording which clearly identifies the business as a motor vehicle sales business. This trade name must be the exact wording as that listed on the dealership sign (retail only) and on your insurance filing. It is much simpler for you to operate under your own name (such as John B. Jones Auto Sales). However, if you wish to use an assumed name, you must provide the following: (A) Sole proprietor applicants wishing to operate under an assumed name must submit a certified copy of an assumed name certificate (the certification is performed by the county clerk and the form is included in this application package on Page 6), (B) All corporations and partnerships wishing to operate under an assumed name must file an assumed name certificate with the Office of the Secretary of State (telephone number 502-564-3490) and with the county clerk and furnish a copy with your application to this office along with Articles of Incorporation. The form to be used is page 6A.

Item #4--List the name(s) and percentage(s) of ownership of each owner, partner, or corporate officer.

Item #5--The address of the established place of business must identify the exact location of the business and must also have a mail drop. "Established place of business," as defined in Chapter 190 of the Kentucky Revised Statutes means: "A permanent, enclosed, commercial building located within this state easily accessible and open to the public at all reasonable times, and at which the business of a vehicle dealer, including the display and repair of vehicles, may be lawfully carriedon in accordance with the terms of all applicable building codes, zoning, and other land use regulatory ordinances."

Items #6, #7, #8, #9 and #10--Self-Explanatory.

Pages 2 and 2A--Financial Statement. Complete the financial statement in detail, as accurately and as completely as possible. Improperly completed statements will cause a delay in approving the license or may lead to a bond requirement or denial. Listing liabilities is as important as listing assets. If there are no liabilities, supply a separate statement to that effect. In addition to the financial statement, the applicant may be required to post a bond up to one hundred thousand dollars ($100,000).

(i)

Kentucky Motor Vehicle Commission APPLICATION FOR MOTOR VEHICLE DEALER LICENSE

TC 98-1 7/2022

Page 3--Be sure submitted photos are in color and of good quality. Wholesale applicants may omit photo number one of the sign.

Pages 4 and 4A--The Personal Data form and the Waiver Release form may be reproduced, if required, for additional partners or corporate officers.

Pages 6, 6A, 6B, 7 and 8--Self-Explanatory.

Page 9--Only those applicants for the Restricted/Automotive Recycling Dealer License need to provide the information specified on this page.

Additionally, the dealer license fee(s), salespersons license fee(s), and insurance are not required prior to approval of your application.

The salesperson license(s) will be provided to you by the Motor Vehicle Commission upon receipt of your application. Each license should be legibly printed, and there is a $40 fee for each license. Each different type of dealer requires salespersons to be licensed, except if restricted/recycling only. All owners/partners of a dealership are also required to be licensed as salespersons.

SEPARATION OF FACILITIES--If you or any other person conducts another business from the location for which the dealer license is used or applied for, your display lot/customer parking area must be separate and apart from what is used for the other business. Your office need not be a separate walled enclosure, but it must be a separate defined area with office furnishings. If there is any question about separation, the Commission may require installation of a physical barrier that does not allow flow-through traffic between the different businesses.

A dealer who operates at more than one location must have a dealer license for each location. This includes separate building franchises.

Mail the completed application to the Motor Vehicle Commission office at the address listed below with a processing fee of one hundred seventy-five dollars ($175.00); in addition, enclose a fee of twenty-five dollars ($25.00) for each owner, partner, or corporate officer listed on Page 1 of the application to conduct a criminal background check. Make all checks payable to the "Kentucky State Treasurer." Each application will be reviewed to determine completeness. The Motor Vehicle Commission meets once a month and applicants will be notified by mail of the Commission's decision.

Sincerely,

Motor Vehicle Commission 200 Mero Street, 3rd Floor West Frankfort, Kentucky 40622 (502) 573-1000

NOTE: Your application must be received at least ten (10) working days prior to the Commission Meeting at which it is to be considered. (The allotted 10 working days do not include weekends, holidays, or the day of the meeting.) The Commission meets the second Friday of each month, but the date may be change due to holidays or bad weather. For an application cut-off date, please call our office at (502) 573-1000.

The Kentucky Motor Vehicle Commission does not discriminate on the basis of race, color, national origin, sex, age, religion, or disability and provides, upon request, reasonable accommodation including auxiliary aids and services necessary to afford an individual with a disability an equal opportunity to participate in all services, programs, and activities.

(ii)

Kentucky Motor Vehicle Commission APPLICATION FOR MOTOR VEHICLE DEALER LICENSE

TC 98-1 7/2022

DEFINITIONS

1. New Motor Vehicle Dealer--A vehicle dealer who holds a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of manufacturer's new motor vehicles.

2. Used Motor Vehicle Dealer--Any person engaged in the business of selling at retail, displaying, offering for sale or dealing in used motor vehicles, but does not mean any person engaged in the business of dismantling, salvaging, or rebuilding motor vehicles by means of using parts.

3. Motor Vehicle Leasing Dealer--Any person engaged in the business of regularly making available, offering to make available, or arranging for another person to use a motor vehicle pursuant to a bailment, lease, or other contractual arrangement under which a charge is made for its use at a periodic rate for at least a monthly term, and title to the motor vehicle is in the name of a person other than the user, but does not mean a manufacturer or its affiliate leasing to its employees or to dealers.

4. Supplemental Lot--A supplemental lot license is for new vehicle dealers only and is for the purpose of selling used vehicle inventory.

5. Wholesale Motor Vehicle Dealer--A dealer who sells to other licensed dealers only. Retail sales to the general public are prohibited.

6. Motor Vehicle Auction Dealer--Any person primarily engaged in the business of offering, negotiating, or attempting to negotiate a sales, purchase, or exchange of a motor vehicle through auction.

7. Automotive Mobility Vehicle Dealer--One who is engaged in the business of selling at retail, displaying, offering for sale, or otherwise dealing in new or used motor vehicles which are specially designed or permanently modified for use by aging or disabled persons.

8. Motor Vehicle Salesperson--Any person who is employed as a salesperson by a motor vehicle dealer to sell motor vehicles or who is employed as an auctioneer by a motor vehicle auction dealer to sell motor vehicles at auction.

9. Assumed Name Certificate--The certificate on Page 6 is required of any sole proprietorship doing business under any name other than the one which uses the last name of the owner. Partnerships or corporations are to use the assumed name certificate on Page 6A.

10. Restricted Dealer/Mobility Dealer--A motor vehicle dealer who exclusively sells, offers to sell, solicits, or advertises specialized motor vehicles such as, but not limited to, funeral coaches and emergency vehicles.

11. Restricted/Automotive Recycling Dealer--Any person engaged in the business of dismantling, salvaging, or recycling salvage vehicles for the purpose of harvesting used parts, components, assemblies, and recyclable materials for resale, reuse, or reclamation.

12. Motorcycle Dealer--A motor vehicle dealer who exclusively sells, offers to sell, solicits, or advertises motorcycles.

13. Recreational Camper Dealer - Any who engages in the business of selling, offering for sale, or otherwise dealing in "recreational vehicles" which includes travel trailers, fifth wheel trailers, pop-upcampers and on-road-drivable R.V.'s.

14. Established Place of Business ? A permanent, enclosed commercial building located within this state easily accessible and open to the public at all reasonable times, at which the business of a motor vehicle dealer, including the display and repair of vehicles, may be lawfully carried out in accordance with the terms of all applicable building codes, zoning, and other land use regulatory ordinances.

(iii)

Kentucky Motor Vehicle Commission APPLICATION FOR MOTOR VEHICLE DEALER LICENSE

TC 98-1 7/2022

This application must be completed in detail and legibly printed. No application will be reviewed unless it is in compliance with the instructions set forth herein. All statements made in this application are subject to the penalties of perjury as set forth in the certificate at the end of the application. An incomplete application will be returned.

Applicant, as used in this application, means an individual operating with his/her name or under an authorized assumed name; two or more partners operating as a partnership under an assumed name; the officers and directors of the corporation operating under the corporate name or an authorized assumed name; and any person with an ownership interest in the proposed business.

New Application

1. New Motor Vehicle Dealer Used Motor Vehicle Dealer Motor Vehicle Leasing Dealer SupplementalLot Recreational Camper Dealer

Change of Ownership

Name Change

Check Each License Required

Change of Location

( ) $200 ( ) $200 ( ) $200 ( ) $200 ( ) $200

Wholesale Motor Vehicle Dealer Motor Vehicle Auction Dealer Motorcycle Dealer RestrictedDealer/Mobility Dealer Restricted/AutomotiveRecyclingDealer

( ) $200 ( ) $200 ( ) $200 ( ) $200 ( ) $200

2. Revenue Cabinet Sales Tax Permit Number

3. The name of the applicant, including the full legal name of an individual, and the legal name of an artificial entity (partnership, corporation, or LLC as set forth in the applicable filing jurisdiction), and the name to be used by the dealership if different than the name of the applicant.

(a) Sole proprietor applicants wishing to operate under an assumed name must attach a copy of an Assumed Name Certificate along with proof of filing with the county clerk (Page 6).

(b) All other applicants (corporation, partnership, etc.) wishing to operate under an assumed name must attach a copy of an Assumed Name Certificate which can be obtained from the Secretary of State, along with proof of filing with the Secretary of State and county clerk (Page 6A).

(c) All limited liability companies should submit a copy of their Articles of Organization, along with a proof of filing with the Secretary of State. Limited liability companies in many respects operate as corporations, and they only exist once certain filings are made in the Secretary of State's Office.

4. Name of all owners, members, or partners of a corporation, partnership, or limited liability company. The percentage of ownership of each owner should also be stated.

_%

_%

_%

_%

5. Address of established place of business, as defined in KRS Chapter 190. (The mailing address and the actual address of the business must be the same.) For mailing purposes, you may add a post office box number in the same city.

Street

City

County

Zip Code

Business Telephone Number(s)

Fax

Business Email: ________________________________________ (1)

Kentucky Motor Vehicle Commission APPLICATION FOR MOTOR VEHICLE DEALER LICENSE

TC 98-1 7/2022

Has the above-described address been previously utilized as a motor vehicle dealership, and if so, under what name,

and date of last license?

6. If business is located outside the city limits, the following information must be furnished: Miles from city

limits

, in which direction

, HighwayNumber

7. Are you a franchised new motor vehicle dealer? Yes

No

If yes, attach manufacturer authorization. If

yes, what lines or makes of vehicles are you franchised?

8. Do you own the property occupied by the proposed dealership? Yes

No

If the property is not owned by the dealership, a copy of the lease (for a minimum of 1 year) must be attached to this

application. The lease must reveal the names and addresses of the lessee and the lessor.

9. Dimensions of lot used exclusively in the business

;

material of which display/storage lot is covered

; and

size of office

.

10. Is any other business operated from this location? Yes

No

. If yes, give nature of business, business

name andother name:

(Physical

separation from other business will be required.)

(1A)

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